Environment & Energy Report

Dam Disaster Accelerates Vale’s Move to Mines in Northern Brazil

Feb. 1, 2019, 9:51 PM

A fatal dam disaster may quicken Vale SA’s shift to newer mines in northern Brazil, where it has the best chance to increase production and compensate for more stringent safety measures at older mines.

Many analysts see a minimal loss to Vale’s net production, with the company using extra capacity and ongoing ramp ups to help mitigate the loss. Vale announced this week it would reduce production by 10 percent, or 40 million tons, as it decommissions all dams similar to the one at Brumadinho that burst on Jan. 25 and killed at least 110 people under an avalanche of...

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